Cost of Housing Makes Lisbon One of the Most Expensive Cities in the World for Living

26 June 2018

Lisbon is getting more and more expensive. In the last year, the Portuguese capital climbed 44 places in the ranking of the cost of living and is already among the 100 most expensive cities in the world to live in. The rise in the cost of housing in the area contributed to the increase. Of particular note is the cost of renting in “prime areas of Lisbon”, where a three-bedroom property already costs roughly 2,650 euros, according to Mercer’s report.

It is the largest ever recorded increase for the Portuguese capital. Lisbon climbed 44 places in the ranking, going from 137th place in 2017 to 93rd place in 2018, according to the study by the consultancy study, which was released on Tuesday, June 26th.

“The factors that are causing this increase are mainly linked to EUR/USD exchange rate fluctuations, while also reflecting a generalised increase in the cost of housing, food and fuel in the city,” the report stated.

As an example, the study compares the cost of renting a three-bedroom property in a “prime area of Lisbon,” which is around 2,650 euros per month. In Hong Kong, the most expensive city in the world, where the cost rises to 10,800 euros. The report also noted that the rental cost of a two-bedroom property stands at around 2,000 euros in Lisbon, 2,600 euros in Paris and 3,500 euros in London.

Hong Kong is the most expensive city in the world

Mercer’s 2018 Cost of Living ranking is led by Hong Kong, followed by Tokyo, Zurich, Singapore, Seoul, Luanda, Shanghai, Ndjamena, Beijing and Bern. The cheapest cities are Tashkent (209th), Tunis (208th), and Bishkek (207th).

Overall, every city in Western Europe rose in the ranking, “as a result of local currency appreciation versus the US dollar, as well as an increase in the cost of goods and services.” Zurich remains the most expensive European city, at 3rd place in the ranking. Several cities in Germany figured prominently in the report, such as Frankfurt (68th place) and Berlin (71st) jumping 49 places, while Munich (57th) climbed 41 places in the standings.

Other cities that climbed in the ranking compared to last year were Paris (34th), which climbed 28 places, Rome (46th) 34 places, Madrid (64th) 47 and Vienna (39th), climbing a total of 39 places. According to the list, cities in the United States fell in the ranking due to the recovery of the European economy, which caused a fall in the US dollar against other major currencies around the world.

The Mercer report assesses more than 375 cities worldwide and determines the comparative cost of more than 200 indicators at each location, including the cost of housing, transportation, food, clothing, household goods and entertainment.

Original Story: Idealista

Photo: Vesela Vaclavikova / Unsplash

Translation: Richard Turner